Dateline Resources: Barrick gave up this gold project and now it will make $47m a year!
Dateline Resources Managing Director Steve Baghdadi on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed Dateline Resources Managing Director Steve Baghdadi talk to Matt Birney on the Bulls N’ Bears Report about Dateline’s scoping study on a project in the USA it snatched from Barrick Gold 3 years ago, that will churn out 75,000 ounces of gold a year for at least 8 years.
TO LISTEN TO THE DATELINE RESOURCES AUDIO INTERVIEW - CLICK BELOW
Dateline recently just tabled a scoping study with a solid set of numbers on its Colosseum gold project in California. The project takes in two historic open pits that were once mined by Alan Bond of all people before it was picked up by Barrick Gold and eventually sold to Dateline in 2021, after Barrick incorrectly estimated it was not likely to be harbouring more than about 300,000 ounces of gold.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by gold developer Dateline Resources.
Matt Birney - ASX code: DTR
Matt Birney - I'm Matt Birney and I'm joined now by the Managing Director of Dateline Resources, Steve Baghdadi.
Matt Birney - Hi Steve.
Steve Baghdadi - G'day Matt how are you doing?
Matt Birney - I'm good so Dateline recently just tabled a scoping study with a solid set of numbers on its Colosseum gold project in California. The project takes in two historic open pits that were once mined by Alan Bond of all people before it was picked up by Barrick Gold and eventually sold to Dateline in 2021, after Barrick incorrectly estimated it was not likely to be harbouring more than about 300,000 ounces of gold.
Matt Birney - Okay Steve when was this project last mined? How much gold did it give up and at what grades?
Steve Baghdadi - The last mine was 1993, they produced 344,000 ounces of bullion and the average grade back there is about 2 grams per tonne.
Matt Birney - Right so how many additional ounces has Dateline discovered at the project since picking it up and what's the official resource there now?
Steve Baghdadi - Over and above the old reserve we have added 800,000 ounces so we're up to about 1.1 million ounces of gold at an average head grade of 1.26 grams per tonne.
Matt Birney - Okay I want to get into the outcomes of your recent scoping study and Colosseum with some rapid fire questions and answer. Firstly what gold price did you use and what's the current gold price today?
Steve Baghdadi - We used $2,200 per ounce US and the gold price today is around $2,780 US.
Matt Birney - What's the estimated mine life based on the existing resource?
Steve Baghdadi - 8.4 years.
Matt Birney - And how much will it cost to build this thing?
Steve Baghdadi - About $135 million US.
Matt Birney - And how much money is it going to make a year on average?
Steve Baghdadi - On average, it will make $47 million US.
Matt Birney - And how many ounces of gold will the project produce a year on average over its eight odd year mine life, at what head grade?
Steve Baghdadi - 75,000 ounces a year at an average head grade of 1.3 grams.
Matt Birney - How much will it cost you to churn out an ounce of gold? Let's go with an all-in sustaining cost per ounce.
Steve Baghdadi - $1,490 US.
Matt Birney - Internal rate of return projected on the project?
Steve Baghdadi - Without any savings on anything our IRR is 31 per cent.
Matt Birney - And have you wrapped a Net Present Value around it in today's money?
Steve Baghdadi - Yeah using that $2,200 gold price the NPV is $235 million dollars US.
Matt Birney - How far down does the mineralization start? How much dead dirt do you need to move to get to the payable ore?
Steve Baghdadi - Oh well, you know when they stopped mining back in, back in 1993 they were on the orebodies so we don't have to move anything. We're on it.
Matt Birney - And so do you see any opportunities to increase the size of the resource and therefore the mine life and if so where will any additional ounces come from do you think?
Steve Baghdadi - That's definitely an objective of ours, we'll be drilling below the existing resource and looking to develop underground mining when we've exhausted all the open pit stuff.
Matt Birney - Stephen Baghdadi from Dateline Resources.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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